About Business Renters Insurance

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How to Calculate Business Interruption Insurance....5

Business renters insurance isn't necessarily for the property where your business is located. Find out more about business renter's insurance with help from a top insurance attorney in this free video clip.

Part of the Video Series: Disability Insurance & More
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Video Transcript

I'm Frank Darras, America's top insurance lawyer. Today, we're going to talk about business renters insurance. Business renters insurance is a must if you own a business, but not the property in which your business is located. If you own your own business you need to know which liabilities you are legally obligated to cover and which ones you need to insure for the safe operation and flow of your business. If you employ four or more workers, you're usually obligated to get personal injury and disease protection for employees who might become injured or ill on the job. The minimum limits are set by your own state and federal law. There's going to be several types of business renters insurance including comprehensive general liability. Boiler and machinery maintenance, business interruption and environmental pollution insurance. Look at your business and figure out what you need. General liability insurance usually covers theft of or damage to your business property and personal injury that occurs on the premises. Sometimes these policies are sold separately but you get to save a bundle if you bundle them. That means buy them together. The amount you need depends on several factors including the number of employees and their potential on site customer traffic. Depending on your business, you might also want to think about purchasing insurance to cover your equipment and your assets while cost varies. Most small business owners can find good coverage for several hundred dollars annually. Contact the property owner and ask what type of insurance they have on the building where you rented and how that policy effects their coverage, ask what maintenance he or she covers. Some won't cover anything other than heating or cooling and lighting for the property. Make sure all of this information is in your lease agreement. Then obtain your own business insurance for anything that the landlord policy doesn't cover. Calculate the costs if your business is interrupted by an earthquake, fire, flood, hurricane, or civil authority. Or if you depend on another business to deliver goods and services that are fundamental to your business. You may need to consider business interruption insurance. That's really important in light of hurricane Sandy. If you think of all those business on the east coast especially those in Hoboken and around New York, some of those businesses were devastated. Those employees are now without work. With business interruption insurance, those businesses could relocate, they could go get a real estate agent, the commissions to go find a new business to lease a new property, the pay roll for the employees, the loss business revenue, all of those could've been taken care of by business interruption insurance. It's cheap, it's inexpensive, and most of us don't carry it. Ask your insurance agent about business interruption for your business. Assess the environmental damage that might result from your business. What if you had to clean up or repair or do a restoration in the light of a hurricane? Assess that likelihood of floods, hurricanes, tornadoes, and other acts of God based on your geographic location of your business. You might need to purchase a rider or a floater to your basic business insurance policy in order to get adequate coverage. Make sure you contact a reputable insurance company and shop around to get the best value. Your policy should best fit your state and federal laws, your type of business, and your specific needs. Business renters insurance, business interruption insurance, comprehensive general liability insurance are a must in this day in age. I'm Frank Darras, founding partner of Darras Law in Ontario, California.


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